AI Disruption and Competition: Competition from emerging AI technologies and hyperscalers (e.g., Anthropic's Claude, Microsoft Copilot, Amazon Bedrock, Google Gemini) is impacting IBM's legacy businesses and consulting segments.

Macroeconomic Challenges & Enterprise IT Spending: General macroeconomic uncertainties are impacting enterprise IT investment and contributing to a 'Growth & Demand Scare,' a scenario to which IBM has historically shown vulnerability.

Geopolitical Tensions/Tariff Uncertainty: Broader geopolitical events and tariff uncertainties can negatively affect global enterprise technology spending sentiment and the overall tech sector.